JGBs bounce back after BOJ purchase draws limited selling

Reuters Staff

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TOKYO, Sept 29 (Reuters) - Japanese government bond prices rebounded on Friday, following a big decline in the previous session, after the Bank of Japan’s bond purchase showed limited selling interest and as U.S. bonds stabilised.

The 10-year JGB yield dropped 0.5 basis point to 0.060 percent, while the price of benchmark December futures rose 0.09 point to 150.35, a day after it posted the biggest loss in three months.

The market calmed down as many Japanese investors stayed on the sidelines on the last day of their financial half-year.

The market showed no reaction to a barrage of Japanese economic data released in the morning. Core consumer inflation in August was 0.7 percent, in line with market expectations. ($1 = 112.6800 yen) (Reporting by Tokyo Markets Team; Editing by Biju Dwarakanath)